Oil production soars to 90,438bpd in July-May

KARACHI: Oil production rose seven percent year-on-year to 88,428 barrels/day (bpd) in May, a brokerage reported on Tuesday.

In May, oil production from key blocks such as Tal, Nashpa, Sinjhoro and Tando Alam, however, declined two percent month-on-month.

Analyst Faizan Ahmed at JS Global Capital said good production from KPD-TAY fields and Adhi failed to offset production decline from other key blocks.

“Overall oil production during 11 months stood at 90,438 bpd versus 88,250 bpd in the corresponding period last year, indicating an increase of two percent,” Ahmed said.

KPD-TAY flows continued to post decline and currently stand at 9,001 bpd as compared to 10,161 bpd recorded in August 2017.

In July-May, oil production from Oil and Gas Development Company (OGDC) fell five percent to 40,974 bpd.

“Pakistan Petroleum Limited remained the best performer during the month with increase in oil production of 11 percent, all thanks to Adhi fields where flows improved 13 percent to clock in at 9,600 bpd,” Ahmed added.

PPL has 39 percent stake in the field.

In May, natural gas production fell 5.2 percent year-on-year and 3.2 percent month-on-month to 3.772 billion cubic feet per day

“Decline can mainly be attributed to weak production from KPD-TAY, Nashpa and Tal block fields,” Ahmed said.

In July-May, gas output decreased one percent to 3.994 billion cubic feet/day.

Both Oil and Gas Development Company and Pakistan Oilfield Limited (POL) remained underperformed in May over the previous month, but Pakistan Petroleum

Limited (PPL) posted an improvement on a sequential basis given rebound in production of 1.8 percent from Sui fields.

Generally, decline in Sui gas fields continued in July-May. Liquefied petroleum gas production increased on a yearly basis but decreased sequentially to clock in at 2,181 tons/day.